What are the Details of Abitibi Metals $10M Private Placement?

Abitibi Metals Corp. Completes $10M Private Placement, Poised for Aggressive Drilling Program

December 29, 2023

Abitibi Metals Corp. (CSE:AMQ) (OTC:AMQFF) (FSE:4KG), a leading mineral acquisition and exploration company, has successfully closed a significant non-brokered private placement, raising gross proceeds of $10 million. This capital boost positions the company for an ambitious exploration and development phase, particularly with its high-grade B26 Polymetallic Copper Project.

Completion of the $10 Million Private Placement

The offering comprised two types of shares:

13,571,429 charity flow-through common shares (CFT Shares) priced at C$0. 70 per share.
833,333 flow-through common shares (FT Shares) priced at C$0.

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60 per share.

Allocation of Funds

The proceeds are earmarked for Canadian exploration expenses and flow-through mining expenditures, as defined by the Income Tax Act (Canada), focusing on the company’s projects in Québec.

CEO Jonathon Deluce's Ambitious Goals

Jonathon Deluce, CEO of Abitibi Metals, expressed gratitude for the investor support and detailed the company's strategic vision. With over fifteen million in the treasury, Abitibi is set to launch its most aggressive drilling program to date, with 30,000 meters fully funded for 2024. The company aims to delineate the open-pit potential of the B26 deposit while expanding the existing underground resource.

Immediate Plans for Drilling

Drilling is set to commence in January, with the company planning to provide updates on the phase one drill program shortly. This aggressive drilling campaign is a significant step toward realizing a robust economic high-grade copper resource.

Compensation to Finders

Abitibi compensated various eligible finders with a total of $364,957. 67 cash and 365,751 finder’s warrants. The Finder's Warrants are exercisable at C$0. 70 per share for 24 months from the closing date of the Offering. Eventus Capital Corp. was notably appointed as a finder in the Offering.

Regulatory Compliance

The securities issued in connection with the Offering are subject to filing requirements with the Canadian Securities Exchange. Additionally, all securities will undergo a four-month statutory hold period post-closing, as per regulatory standards.

Focus on High-Grade Metal Deposits

Abitibi Metals Corp. is dedicated to the development of high-quality base and precious metal properties in Quebec. The company’s portfolio includes the B26 Polymetallic Copper Deposit, showcasing significant copper equivalent resources, and the Beschefer Gold Project, known for historical drilling results indicating substantial gold intercepts.

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